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I owe $22,000 and have no assets that I can offer to pay back my debts. I quit my job. One of my freinds recomended a proposal or a bankruptcy when I asked him for a loan. Can I offer to pay $500/month for one year only (it will amount to 27% of total debt) because I want to start building my credit ASAP. Also not having a job right now, does that affect the creditors … I will get help from family and friends to make the payments in case I do not find a job immediately. Do they care (I mean if I fail to meet the obligations – its better for them – why would they object). I say this because I am confident I can manage this (even though the numbers dont add up) because my family and friends will be hlping me.

One Response to “Help”

Your creditors definitely care if you have a job or not as the presence of a job often is a direct indicator of whether or not someone will be able to make the payments in the consumer proposal. Although, you can have a family member enter into a 3rd party guarantee for the payments and that may be sufficient for the creditors to come on board. As for the figures you have quoted, more information is needed to provide a realistic estimate, but most proposals are done over 3 or 4 year period of time. That is not to say a shorter period is not acceptable, but it may not be sufficient to get the creditors on board. But the best thing to do is to sit down with a local trustee and they can run through all of the finer aspects of a proposal for you.